News

The European Commission did not cite any wrongdoing by specific companies in its preliminary report on 28 November 2008 into whether certain practices have stifled pharmaceutical innovation in Europe and/or prevented generic medicines from reaching the market in a timely fashion. However, enforcement action cannot be ruled out later, according to lawyers familiar with the investigation. This will only be known when the Commission issues its final report which is expected in late March or early April 2009.

Novartis has agreed to pay $20 million upfront for the exclusive right to an investigational cytomegalovirus (CMV) vaccine which is being developed by the privately-held AlphaVax Inc of Research Triangle Park, North Carolina. The total value of the deal, which includes an optional equity investment, milestones and royalties, was not disclosed.

Arpida AG has announced plans to reduce its workforce by three-quarters and stop two clinical-stage drug programmes following an unexpected negative opinion on its candidate antibiotic for skin infections by an advisory committee of the US Food and Drug Administration. The restructuring measures were announced on 16 December 2008.

Antisoma Plc said that a randomised Phase 2 trial of its small-molecule drug, ASA404, in non-small cell lung cancer (NSCLC) has shown that patients in the treatment group had a median survival of 14 months.

GlaxoSmithKline said that it has formed a strategic alliance to develop aptamer therapeutics with the privately-held US biopharmaceutical company, Archemix Corp. The deal is valued at up to $1.4 billion and will focus on developing products to treat inflammatory diseases such as rheumatoid arthritis and inflammatory bowel disease. It was announced on 23 December 2008.

Novozymes A/S of Denmark has entered into a licensing and collaboration agreement with sanofi-aventis to develop a new antibiotic for severe infections caused by the bacteria, Staphylococcus and Streptococcus. Financial terms were not disclosed.

MediGene AG of Germany has secured an equity funding agreement with YA Global Investments LP under which it can sell its shares over a three-year period for an amount of up to €25 million. It is the second European biotechnology company to conclude an equity deal with YA Global in less than a month.

Intercytex Group Plc has announced the all-share acquisition of Axordia Ltd, a privately-held UK stem cell company, for £1.68 million. Announced on 22 December 2008, the deal will expand Intercytex’s regenerative medicines’ business into stem cell therapies in addition to its focus on tissue repair.

The European Medicines Agency (EMEA) will acquire new responsibilities for making sure that drugs launched on the European market are safe under legislation initiated by the European Commission.

The international investment group, Abingworth, has raised an additional £84 million to invest in life science companies, bringing the total funds in its life science vehicle, Abingworth Bioventures V LP, up to £392 million.